Weekly Market Update - 10 June 2024

Boeing

Boeing Co. says its jet deliveries to China remain halted as regulators there scrutinize the design of a new, 25-hour cockpit voice recorder used in aircraft including the 737 Max and 787 Dreamliner. The planemaker provided a statement clarifying the status of its aircraft exports to China after Shenzhen TV reported that jet deliveries had resumed. Boeing shares rose during Monday’s trading session as investors cheered the prospect of the latest delivery freeze ending. The US Federal Aviation Administration has certified the new cockpit voice recorder system, which is powered by lithium-ion batteries. The design has also been accepted by Europe’s main aviation regulator.

Source: Bloomberg

US Bonds Advance

The US bond market advanced as signs of labor-market cooling reinforced speculation the Federal Reserve will be able to cut rates this year. Just a week away from the Fed meeting, the so-called JOLTS report showed US job openings hit the lowest since 2021. The figures lifted Treasuries, with 10-year yields extending a four-day plunge to almost 30 basis points. Fed swaps are now pricing in a first cut in November — and higher odds of a September reduction. Despite the dovish bets, stocks struggled to gain much traction as the bad-news-is-good-news narrative failed to entice traders. The S&P 500 edged up, while oil fell to the lowest in about four months and copper slid.

Source: Bloomberg

Cutting Ties

The Optica Foundation will no longer accept money from Huawei for a competition to fund cutting edge-research at US universities, the group’s chief executive officer said, after Bloomberg News reported the Chinese company was secretly funding the program. Huawei’s funding “has diverted attention from the program’s mission to support early career professionals focused on our field of optics and photonics,” CEO Elizabeth Rogan wrote in the letter to the Optica board of directors. “Huawei will have no connection to the program moving forward.” The foundation will also return all the money that Huawei donated for 2024 and the previous two years. She said the selection process is underway for this year’s challenge and winners will be announced later in the year.

Source: Bloomberg